Tarnavis Lee, Mail Fraud, Wire Fraud, and Money Laundering, Illinois 2021

Four individuals have been brought to justice in the state of Illinois after pleading guilty to mail fraud, wire fraud, and money laundering charges. The schemes, which involved submitting false claims for childcare services to the Illinois Department of Human Services, resulted in a staggering loss of approximately $1,300,000 to the State of Illinois and the United States.

The individuals involved in the schemes are Tarnavis Lee, 42, of the 6200 block of W. 80th Street in Burbank, Illinois; Demetra Jackson, 42, of the 2700 block of W. 64th Street in Chicago, Illinois; LaShanda Hudson, 40, of the 6700 block of S. Maplewood in Chicago; and Elizabeth McFarland, 47, of the 600 block of Rothwood Avenue in Madison, Tennessee.

According to the indictments and plea agreements, the Illinois Department of Human Services administered the Child Care Assistance Program, which was partially funded by the federal government. The program paid for childcare services for low-income parents while they worked or participated in approved educational programs. Each of the individuals charged engaged in schemes to defraud DHS by submitting claims for childcare services that were not provided or not provided to the extent claimed.

Tarnavis Lee, one of the defendants, pleaded guilty on September 8, 2021, to two counts of mail fraud, two counts of wire fraud, and two counts of money laundering. As part of the plea agreement, Lee agreed that she caused a loss to the United States and the State of Illinois of $913,390.66. Her sentencing is scheduled for January 6, 2022.

The statutory penalties for each count of mail and wire fraud are up to 20 years of imprisonment, 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment. The statutory penalties for each count of money laundering are up to 20 years of imprisonment; up to 3 years of supervised release; a fine up to $500,000 or twice the value of the property involved in the transactions, whichever is greater, or both; and a mandatory $100 special assessment.

All defendants remain free on bond pending sentencing. The scheduled sentencings are set to take place at the federal courthouse in Springfield, Illinois. The cases were the result of a joint investigation by the Department of Health and Human Services – Office of Inspector General, St. Louis Field Office, and the Illinois State Police Medicaid Fraud Control Bureau, Central Division. Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.

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